A “Lemon” car ad (Akerlof’s market). Story: Maya wants to buy used espresso machines. Sellers know if they are broken. Maya doesn’t. She offers only $200 (average price). Good machines leave market. Only “lemons” remain.
Incentive pay – bonus based on store profit, not hourly wage. Managerial Economics Lecture Notes Ppt
A toolbox labeled: Demand, Costs, Markets, Strategy, Incentives. Maya’s final lesson to her team: “Economics is not about money. It’s about choices. Every decision has a trade-off. Use data, think about incentives, and always ask: compared to what?” A “Lemon” car ad (Akerlof’s market)
In PPT, use "Appear" animations to reveal curves step-by-step. Draw the demand curve first, then shift it to the right to show "increase in income." This prevents cognitive overload. Maya doesn’t
You don't need to be a designer to build effective slides. Follow the (10 slides, 20 minutes, 30-point font), but adapted for economics.
A table with rent (fixed) and coffee beans (variable). Story: Maya’s rent is $3,000/month (fixed). Beans cost $0.50/cup (variable). Selling price = $3.00.